LUXEMBOURG, Nov. 13,
2024 /PRNewswire/ -- Adecoagro S.A. (NYSE: AGRO,
Bloomberg: AGRO US, Reuters:
AGRO.K), a leading sustainable production company in South America, announced today its results for
the third quarter ended September 30,
2024. The financial information contained in this press
release is based on consolidated interim financial statements
presented in US dollars and prepared in accordance with
International Financial Reporting Standards (IFRS) except for Non -
IFRS measures. Please refer to page 23 for a definition and
reconciliation to IFRS of the Non - IFRS measures used in this
earnings release.
Main highlights for the period:
- Gross sales were up 17.7% and 6.3% year-over-year during 3Q24
and 9M24, respectively. Higher volume sold more than offset the
lower prices of our main commodities.
- Adjusted EBITDA was down 28.6% in 3Q24. However, when further
adjusted by the one-time event of a farm sale in September 2023 ($29.8
million in Adjusted EBITDA), the Adjusted EBITDA was down
11.7% in the quarter.
- On a year-to-date basis, Adjusted EBITDA declined by 10.5%
year-over-year. Despite record results in our Rice operations and
an outperformance from our Dairy business, the decrease was
mainly driven by a year-over-year loss in the mark-to-market of our
biological assets in our Sugar, Ethanol & Energy business due
to dry weather and lower prices.
- Year to date, we have already committed $26.0 million more to shareholder distributions
than the annual minimum figure required by our distribution policy
($96.3 million vs $70.3 million - via dividend and share
repurchase). Going forward, we continue focusing on the return to
our shareholders.
Sugar, Ethanol & Energy business:
- Adjusted EBITDA in the SE&E business reached $100.1 million during 3Q24 and $258.9 million during 9M24, 12.6% and 16.0% lower
year-over-year, respectively.
(+) Sugar maximization (55% in 3Q24 / 51% in 9M24) as prices
traded above ethanol. We continue to maximize hydrous ethanol
within our ethanol production on better pricing.
(+) Higher net sales on higher sugar and ethanol volumes
sold.
(+) Cost of production remained flat at 7.8 cts/lb
driven by better dilution and weaker FX.
(-/+) 10.1% lower year-over-year crushing volume in 3Q24 on
lower yields. Year-to-date crushing was up 6.4% on greater
sugarcane availability and higher third-party
cane.(-) Year-over-year loss in biological asset due to
lower expected yields versus 2023, on below average rains, coupled
with year-over-year decline in sugar and ethanol prices.
Farming business:
- Adjusted EBITDA for the Farming business amounted to
$17.4 million during 3Q24,
representing a $26.8 million
year-over-year decline due to a farm sale conducted in September 2023. Excluding this event, Adjusted
EBITDA performance was in line versus the prior year. Year-to-date,
Adjusted EBITDA reached $99.2
million, 10.8% higher compared to the same period of last
year.
(+) Year-over-year gains in the mark-to-market of our
biological asset and agricultural produce for our Crops (better
yields and area) and Rice operations (better prices and area).
(+) Higher prices for Rice and Dairy's higher value-added
products.
(-) Lower prices for soybean, corn and wheat.
(-) Higher costs in U.S. dollar terms.
(+/-) One-off events. Sale of La Pecuaria farm
($15.3 million in Adjusted EBITDA)
conducted in 2Q24 versus the sale of El Meridiano in 3Q23
($29.8 million in Adjusted
EBITDA).
Remarks
2024 Shareholder Distribution
- As of the date of this report, we have already committed
$96.3 million to shareholder
distribution, equivalent to 55% of the Adjusted Free Cash Flow from
Operations (NCFO) generated in 2023. This represents $26.0 million above the annual minimum stated in
our distribution policy.
- Cash dividends: $35.0 million
approved. On November 27th, we will
pay the second installment of $17.5
million (approximately $0.1740
per share) to shareholders of the Company of record at close of
business on November 12th. First
installment of $17.5 million paid on
May 29th (approximately $0.1682 per share).
- Share repurchases: $61.3 million
expended year-to-date in repurchasing 5.7% of the company's equity
(6.0 million shares at an average price of $10.16 per share).
Independent Farmland Appraisal Report
- As of September 30th,
2024, Cushman & Wakefield (C&W) updated its
independent appraisal of Adecoagro's farmland which consists of
210,371 hectares valued at $682.6
million. On a comparable basis, current valuation of our
land portfolio represents a year-over-year increase of 0.4%.
Cash Tender of AGRO'27s 6.00% Notes - Final
Result
- On August 17th, 2024, we
finalized the cash tender offer of AGRO's 6.00% Senior Notes
due 2027. The Company repurchased $84.4
million aggregate principal amount of the outstanding senior
bonds. This proves the Company's disciplined and constant search
for Liability Management opportunities to better finance our
operations at attractive rates and add value to
shareholders.
Non-Gaap Financial Measures: For a full
reconciliation of non-gaap financial measures please refer to page
23 of our 3Q24 Earnings Release found on Adecoagro's website
(ir.adecoagro.com)
Forward-Looking Statements: This press
release contains forward-looking statements that are based on our
current expectations, assumptions, estimates and projections about
us and our industry. These forward-looking statements can be
identified by words or phrases such as "anticipate," "forecast",
"believe," "continue," "estimate," "expect," "intend," "is/are
likely to," "may," "plan," "should," "would," or other similar
expressions.
These forward-looking statements involve various risks and
uncertainties. Although we believe that our expectations expressed
in these forward-looking statements are reasonable, our
expectations may turn out to be incorrect. Our actual results could
be materially different from our expectations. In light of the
risks and uncertainties described above, the estimates and
forward-looking statements discussed in this press release might
not occur, and our future results and our performance may differ
materially from those expressed in these forward-looking statements
due to, inclusive, but not limited to, the factors mentioned above.
Because of these uncertainties, you should not make any investment
decision based on these estimates and forward-looking
statements.
The forward-looking statements made in this press release
relate only to events or information as of the date on which the
statements are made in this press release. We undertake no
obligation to update any forward-looking statements to reflect
events or circumstances after the date on which the statements are
made or to reflect the occurrence of unanticipated events.
To read the full 3Q24 earnings release, please access
ir.adecoagro.com. A conference call to discuss 3Q24 results will be
held on November 13, 2024, with a
live webcast through the internet:
Conference Call
November 14, 2024
10 a.m. US EST
12 p.m. Buenos Aires
12 p.m. Sao
Paulo
4 p.m. Luxembourg
To participate, please register at the link
Investor Relations
Department
Emilio Gnecco
CFO
Victoria Cabello
IRO
Email: ir@adecoagro.com
About Adecoagro:
Adecoagro is a leading sustainable
production company in South
America. Adecoagro owns 210.4 thousand hectares of farmland
and several industrial facilities spread across the most productive
regions of Argentina, Brazil and Uruguay, where it produces over 2.8 million
tons of agricultural products and over 1 million MWh of renewable
electricity.
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SOURCE Adecoagro S.A.